Tourism boosts Vietnam projects

Thousand to $2.5 million is the average price range of luxury apartments in Da Nang City. (AFP)

By

Staff Writer

PublishedSunday, March 28, 2010

Luxury real estate projects in central Da Nang City have flourished while a focus on low- and mid-end projects continues to characterise the industry, which is still reeling from the global economic crisis around the country, according to Vietnam News.

Da Nang became a destination for tourism real estate after the city's beaches were selected as among the six most beautiful beaches on earth by US-based Forbes magazine, said Trevor Morley from real estate consulting firm, Savills Vietnam.

Da Nang's beaches are prized by developers who in reaction to high tourism demand are racing to construct villas and luxury apartments.

The demand is evident after recently constructed projects along the beaches of Son Tra and Ngu Hanh Son districts sold much faster than expected. Another project by VinaCapital Real Estate, the Ocean Villas project, sold 80 per cent of recently constructed luxury beach villas before the end of the project's first phase.

Mario Lotti, Director of the Hyatt Recency Da Nang Residences project, which is made up of 174 luxury apartments and 27 beach villas, said 75 per cent of properties of his project had been sold even though the project had yet to be completed.

Development activity is not showing signs of slowing after VinaCapital Group signed an exclusive contract with the Southern Cros Development Company in March to construct the luxury Norman Estates beach villa complex worth $40 million (Dh146.92m), the newspaper reported.

According to Savills, 13 projects to construct a total of 670 villas and 19 projects for 8,600 apartments, were planned to come up over the next five years.

Luxury apartments in Da Nang continue to be priced high, with average prices ranging from $485,000 to $2.5 million per apartment.